CGTMSE (Credit Guarantee fund Trust for Micro and Small Enterprises) is setup by GoI, & SIDBI in Aug’2000 to make collateral free credit facilities available to MSEs(Micro & Small Enterprises).

As per RBI guidelines, MSE advances guaranteed by CGTMSE will attract zero risk weight for the guaranteed portion and no provision is to be made for the guaranteed portion in case the advances covered under CGTMSE, becomes NPA.


Under CGTMSE, guarantee cover is provided by the trust for the credit facilities to an extent of Rs 5 crore that have been sanctioned without any collateral security and/or third party guarantees to all new and existing Micro and Small Enterprises (both Mfg as well as services) except Educational & Training Institutions.

CGTMSE has recently modified the scheme by introducing Hybrid Security product wherein loans sanctioned to MSE units with partial collateral coverage can be covered under the credit guarantee scheme (CGS) of CGTMSE i.e., A portion of loan which is not covered by collateral security (Max. of Rs 5.00 Crs) sanctioned to MSE units can be covered under CGTMSE.